uhs-8k_20180425.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2018

 

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

DELAWARE

 

1-10765

 

23-2077891

(State or other jurisdiction of

 

(Commission

 

(I.R.S. Employer

Incorporation or Organization)

 

File Number)

 

Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, PENNSYLVANIA 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition

On April 25, 2018, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

 

 

 

99.1

  

Universal Health Services, Inc., press release, dated April 25, 2018.

 

 

 

Exhibit Index

 

Exhibit No.

  

Exhibit

 

 

99.1

  

Universal Health Services, Inc., press release, dated April 25, 2018.

 

 


 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Universal Health Services, Inc.

 

By:

 

/s/ Steve Filton

Name: Steve Filton

Title: Executive Vice President and

            Chief Financial Officer

Date: April 25, 2018

 

 

 

 

uhs-ex991_6.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 25, 2018

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

REPORTS 2018 FIRST QUARTER FINANCIAL RESULTS

 

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2018 and 2017:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $223.8 million, or $2.36 per diluted share, during the first quarter of 2018 as compared to $206.1 million, or $2.12 per diluted share, during the comparable quarter of 2017.  Net revenues increased 2.9% to $2.69 billion during the first quarter of 2018 as compared to $2.61 billion during the first quarter of 2017.

 

For the three-month period ended March 31, 2018, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), was $232.1 million, or $2.45 per diluted share, as compared to $204.4 million, or $2.10 per diluted share, during the first quarter of 2017.  

 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2018, is a net aggregate unfavorable after-tax impact of $8.3 million, or $.09 per diluted share, consisting of: (i) an unfavorable after-tax impact of $9.9 million, or $.11 per diluted share, resulting from a $13 million pre-tax increase in the reserve established in connection with the discussions with the Department of Justice (“DOJ”), as discussed below, and; (ii) a favorable after-tax impact of $1.6 million, or $.02 per diluted share, resulting from our 2017 adoption of ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). Beginning in 2018, the amount of depreciation and amortization expense recorded in connection with the implementation of electronic health records (“EHR”) applications at our acute care hospitals no longer warrants inclusion in our presentation of adjusted net income attributable to UHS.  

 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2017, is a net aggregate favorable after-tax impact of $1.7 million, or $.02 per diluted share, consisting of: (i) a favorable after-tax impact of $6.8 million, or $.07 per diluted share, related to our adoption of ASU 2016-09, and; (ii) an unfavorable after-tax impact of $5.1 million, or $.05 per diluted share, related to the depreciation and amortization expense recorded in connection with the implementation of EHR applications at our acute care hospitals.  

 

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”), was $442.1 million during the first quarter of 2018 as compared to $460.3 million during the first quarter of 2017.  Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of the above-mentioned $13.0 million pre-tax increase in the DOJ reserve recorded during the


first quarter of 2018, was $455.1 million during the first quarter of 2018 as compared to $460.3 million during the first quarter of 2017.

 

Acute Care Services – Three-month periods ended March 31, 2018 and 2017:

During the first quarter of 2018, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased 2.3% and adjusted patient days increased 5.4%, as compared to the first quarter of 2017. At these facilities, net revenue per adjusted admission increased 3.4% while net revenue per adjusted patient day increased 0.4% during the first quarter of 2018 as compared to the comparable quarter of 2017. Net revenues from our acute care services on a same facility basis increased 3.7% during the first quarter of 2018 as compared to the comparable quarter of the prior year.

 

Behavioral Health Care Services – Three-month periods ended March 31, 2018 and 2017:

During the first quarter of 2018, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 1.6% while adjusted patient days increased 0.4% as compared to the first quarter of 2017. At these facilities, net revenue per adjusted admission increased 2.0% while net revenue per adjusted patient day increased 3.2% during the first quarter of 2018 as compared to the comparable quarter in 2017. On a same facility basis, our behavioral health care services’ net revenues increased 3.0% during the first quarter of 2018 as compared to the first quarter of 2017.    

 

Net Cash Provided by Operating Activities and Share Repurchase Program:

For the three months ended March 31, 2018, our net cash provided by operating activities was $364 million as compared to $483 million generated during the first quarter of 2017. The $119 million decrease was due to: (i) a $38 million unfavorable change in cash flows from foreign currency forward exchange contracts related to our investments in the U.K; (ii) a $67 million unfavorable change in accounts receivable; (iii) a $41 million unfavorable change in accrued and deferred income taxes, partially offset by; (iv) $27 million of other combined net favorable changes.

 

In November of 2017, our Board of Directors authorized a $400 million increase to our stock repurchase program, which increased the aggregate authorization to $1.2 billion from the previous $800 million authorization approved during 2016 and 2014.  Pursuant to this program, we may purchase shares of our Class B Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions.  

 

In conjunction with our stock repurchase program, during the first quarter of 2018, we have repurchased approximately 42,000 shares at an aggregate cost of $4.6 million (approximately $110 per share).  Since inception of the program through March 31, 2018, we have repurchased approximately 7.39 million shares at an aggregate cost of $840.9 million (approximately $114 per share).  

 

Conference call information:        

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 26, 2018. The dial-in number is 1-877-648-7971.  

A live broadcast of the conference call will be available on our website at www.uhsinc.com.  A replay of the call will be available following the conclusion of the live call and will be available for one full year.


Reserve-DOJ:

During the first quarter of 2018, we recorded a $13 million pre-tax increase to the reserve established in connection with the civil aspects of the government’s investigation of certain of our behavioral health care facilities, increasing the aggregate pre-tax reserve to $35 million.  Changes in the reserve may be required in future periods as discussions with the DOJ continue and additional information becomes available.  We cannot predict the ultimate resolution of this matter and therefore can provide no assurance that final amounts paid in settlement or otherwise, if any, or associated costs, will not differ materially from our established reserve.  Please see Item 3-Legal Proceedings in our Form 10-K for the year ended December 31, 2017 for additional disclosure in connection with this matter.

  

Adoption of new revenue recognition standard:

On January 1, 2018, we adopted, using the modified retrospective approach, ASU 2014-09 and ASU 2016-08, “Revenue from Contracts with Customers (Topic 606)” and “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, respectively, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The most significant change from the adoption of the new standard relates to our estimation for the allowance for doubtful accounts. Under the previous standards, our estimate for amounts not expected to be collected based upon our historical experience, were reflected as provision for doubtful accounts, included within net revenue. Under the new standard, our estimate for amounts not expected to be collected based on historical experience will continue to be recognized as a reduction to net revenue, however, not reflected separately as provision for doubtful accounts. Under the new standard, subsequent changes in estimate of collectability due to a change in the financial status of a payor, for example a bankruptcy, will be recognized as bad debt expense in operating charges. The adoption of this ASU in 2018, and amounts recognized as bad debt expense and included in other operating expenses, did not have a material impact on our consolidated financial statements.      

 

Tax Cuts and Jobs Act of 2017:

Effective January 1, 2018, our provision for income taxes, net income attributable to UHS, and net income attributable to UHS per diluted share, were favorably impacted by the Tax Cuts and Jobs Act of 2017 which made broad and complex changes to the U.S. tax code including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%.

 

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation’s largest and most respected hospital companies, Universal Health Services, Inc. (“UHS”) has built an impressive record of achievement and performance. Growing steadily since its inception into an esteemed Fortune 500 corporation, UHS today has annual revenue exceeding $10 billion. In 2017, UHS was recognized as one of the World’s Most Admired Companies by Fortune; ranked #276 on the Fortune 500, and listed #275 in Forbes inaugural ranking of America’s Top 500 Public Companies.

 

Our operating philosophy is as effective today as it was 40 years ago, enabling us to provide compassionate care to our patients and their loved ones: Build or acquire high quality hospitals in rapidly growing markets, invest in the people and equipment needed to allow each facility to thrive, and become the leading healthcare provider in each community we serve.


 

Headquartered in King of Prussia, PA, UHS has more than 83,000 employees and through its subsidiaries operates 326 inpatient acute care hospitals and behavioral health facilities and 32 outpatient and other facilities located in 37 states, Washington, D.C., the United Kingdom, Puerto Rico and the U.S. Virgin Islands. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).  For additional information on the Company, visit our web site: http://www.uhsinc.com.

 

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2017), may cause the results to differ materially from those anticipated in the forward-looking statements.  Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

We believe that operating income, operating margin, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and adjusted EBITDA net of NCI, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items impacting our net income attributable to UHS, such as, changes in the reserve established in connection with our discussions with the DOJ, our adoption of ASU 2016-09, and other potential items that are nonrecurring or non-operational in nature including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of long-lived assets, and other material amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2017. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

 

 

(more)



Universal Health Services, Inc.

 

Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2018

 

 

2017

 

Net revenues before provision for doubtful accounts

 

$

2,687,516

 

 

$

2,825,472

 

Less: Provision for doubtful accounts

 

 

 

 

 

212,614

 

Net revenues

 

 

2,687,516

 

 

 

2,612,858

 

 

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,300,148

 

 

 

1,237,964

 

Other operating expenses

 

 

620,819

 

 

 

607,360

 

Supplies expense

 

 

292,929

 

 

 

277,614

 

Depreciation and amortization

 

 

113,103

 

 

 

110,798

 

Lease and rental expense

 

 

26,703

 

 

 

25,189

 

 

 

 

2,353,702

 

 

 

2,258,925

 

Income from operations

 

 

333,814

 

 

 

353,933

 

Interest expense, net

 

 

37,576

 

 

 

35,507

 

Income before income taxes

 

 

296,238

 

 

 

318,426

 

Provision for income taxes

 

 

67,569

 

 

 

107,899

 

Net income

 

 

228,669

 

 

 

210,527

 

Less:  Net income attributable to noncontrolling interests

 

 

4,837

 

 

 

4,472

 

Net income attributable to UHS

 

$

223,832

 

 

$

206,055

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

2.37

 

 

$

2.13

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

2.36

 

 

$

2.12

 

 



Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2018

 

 

2017

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

Net income attributable to UHS

 

$

223,832

 

 

$

206,055

 

Less: Net income attributable to unvested restricted share grants

 

 

(104

)

 

 

(94

)

Net income attributable to UHS - basic and diluted

 

$

223,728

 

 

$

205,961

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

94,226

 

 

 

96,585

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

2.37

 

 

$

2.13

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

94,226

 

 

 

96,585

 

Add: Other share equivalents

 

 

457

 

 

 

787

 

Weighted average number of common shares and equiv. - diluted

 

 

94,683

 

 

 

97,372

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

2.36

 

 

$

2.12

 

 


Universal Health Services, Inc.

 

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

 

For the Three Months ended March 31, 2018 and 2017

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

% Net

 

 

Three months ended

 

 

% Net

 

 

March 31, 2018

 

 

revenues

 

 

March 31, 2017

 

 

revenues

 

Net income attributable to UHS

$

223,832

 

 

 

 

 

 

$

206,055

 

 

 

 

 

   Depreciation and amortization

 

113,103

 

 

 

 

 

 

 

110,798

 

 

 

 

 

   Interest expense, net

 

37,576

 

 

 

 

 

 

 

35,507

 

 

 

 

 

   Provision for income taxes

 

67,569

 

 

 

 

 

 

 

107,899

 

 

 

 

 

EBITDA net of NCI

$

442,080

 

 

 

16.4

%

 

$

460,259

 

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in DOJ reserve

 

13,000

 

 

 

 

 

 

 

-

 

 

 

 

 

Adjusted EBITDA net of NCI

$

455,080

 

 

 

16.9

%

 

$

460,259

 

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

2,687,516

 

 

 

 

 

 

$

2,612,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31, 2018

 

 

March 31, 2017

 

 

 

 

 

 

Per

 

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

223,832

 

 

$

2.36

 

 

$

206,055

 

 

$

2.12

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in DOJ reserve, after-tax

 

9,911

 

 

 

0.11

 

 

 

-

 

 

 

-

 

Impact of ASU 2016-09

 

(1,598

)

 

 

(0.02

)

 

 

(6,750

)

 

 

(0.07

)

EHR depreciation & amortization, after-tax

 

-

 

 

 

-

 

 

 

5,073

 

 

 

0.05

 

Subtotal

$

8,313

 

 

$

0.09

 

 

$

(1,677

)

 

$

(0.02

)

Adjusted net income attributable to UHS

$

232,145

 

 

$

2.45

 

 

$

204,378

 

 

$

2.10

 

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2018

 

 

2017

 

Net income

 

$

228,669

 

 

$

210,527

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized derivative gains on cash flow hedges

 

 

2,124

 

 

 

3,066

 

Unrealized loss on marketable security

 

 

2,367

 

 

 

1,094

 

Foreign currency translation adjustment

 

 

(4,341

)

 

 

7,236

 

Other comprehensive income before tax

 

 

150

 

 

 

11,396

 

Income tax expense related to items of other comprehensive income

 

 

1,077

 

 

 

1,551

 

Total other comprehensive income (loss), net of tax

 

 

(927

)

 

 

9,845

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

227,742

 

 

 

220,372

 

Less: Comprehensive income attributable to noncontrolling interests

 

 

4,837

 

 

 

4,472

 

Comprehensive income attributable to UHS

 

$

222,905

 

 

$

215,900

 

 


Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

73,053

 

 

$

74,423

 

Accounts receivable, net

 

 

1,569,803

 

 

 

1,500,898

 

Supplies

 

 

137,246

 

 

 

136,177

 

Other current assets

 

 

104,624

 

 

 

86,504

 

Total current assets

 

 

1,884,726

 

 

 

1,798,002

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

8,144,555

 

 

 

7,921,126

 

Less: accumulated depreciation

 

 

(3,444,003

)

 

 

(3,349,289

)

 

 

 

4,700,552

 

 

 

4,571,837

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

3,843,126

 

 

 

3,825,157

 

Deferred charges

 

 

8,882

 

 

 

9,787

 

Deferred income taxes

 

 

3,072

 

 

 

3,007

 

Other

 

 

583,159

 

 

 

554,038

 

Total Assets

 

$

11,023,517

 

 

$

10,761,828

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

566,248

 

 

$

545,619

 

Accounts payable and accrued liabilities

 

 

1,366,333

 

 

 

1,284,081

 

Federal and state taxes

 

 

86,996

 

 

 

18,334

 

Total current liabilities

 

 

2,019,577

 

 

 

1,848,034

 

 

 

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

311,900

 

 

 

306,304

 

Long-term debt

 

 

3,355,087

 

 

 

3,494,390

 

Deferred income taxes

 

 

44,850

 

 

 

54,962

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

6,081

 

 

 

6,702

 

 

 

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

5,215,646

 

 

 

4,989,514

 

Noncontrolling interest

 

 

70,376

 

 

 

61,922

 

Total equity

 

 

5,286,022

 

 

 

5,051,436

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

11,023,517

 

 

$

10,761,828

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Three months

 

 

ended March 31,

 

 

2018

 

 

2017

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net income

$

228,669

 

 

$

210,527

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation & amortization

 

113,134

 

 

 

110,798

 

Stock-based compensation expense

 

19,700

 

 

 

15,348

 

Gain on sale of assets and businesses

 

(703

)

 

 

0

 

Changes in assets & liabilities, net of effects from acquisitions and dispositions:

 

 

 

 

 

 

 

Accounts receivable

 

(72,526

)

 

 

(5,362

)

Accrued interest

 

(6,209

)

 

 

(6,123

)

Accrued and deferred income taxes

 

61,674

 

 

 

102,269

 

Other working capital accounts

 

59,032

 

 

 

66,877

 

Other assets and deferred charges

 

(5,438

)

 

 

(7,654

)

Other

 

(37,642

)

 

 

(229

)

Accrued insurance expense, net of commercial premiums paid

 

23,125

 

 

 

22,007

 

Payments made in settlement of self-insurance claims

 

(18,765

)

 

 

(25,349

)

Net cash provided by operating activities

 

364,051

 

 

 

483,109

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Property and equipment additions, net of disposals

 

(189,041

)

 

 

(144,338

)

Acquisition of property and businesses

 

(20,931

)

 

 

(17,832

)

Proceeds received from sales of assets and businesses

 

839

 

 

 

0

 

Costs incurred for purchase and implementation of information technology application

 

(8,570

)

 

 

(9,456

)

Decrease (increase) in capital reserves of commercial insurance subsidiary

 

100

 

 

 

(3,000

)

Investment in, and advances to, joint venture

 

(8,675

)

 

 

0

 

Net cash used in investing activities

 

(226,278

)

 

 

(174,626

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Reduction of long-term debt

 

(140,676

)

 

 

(260,633

)

Additional borrowings

 

20,500

 

 

 

21,600

 

Repurchase of common shares

 

(9,441

)

 

 

(29,167

)

Dividends paid

 

(9,422

)

 

 

(9,662

)

Issuance of common stock

 

2,545

 

 

 

2,540

 

Profit distributions to noncontrolling interests

 

(4,217

)

 

 

(4,118

)

Net cash used in financing activities

 

(140,711

)

 

 

(279,440

)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

1,857

 

 

 

285

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

(1,081

)

 

 

29,328

 

Cash, cash equivalents and restricted cash, beginning of period

 

167,297

 

 

 

121,950

 

Cash, cash equivalents and restricted cash, end of period

$

166,216

 

 

$

151,278

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

Interest paid

$

41,539

 

 

$

39,404

 

Income taxes paid, net of refunds

$

2,749

 

 

$

5,253

 

Noncash purchases of property and equipment

$

84,708

 

 

$

56,427

 

 


 

Universal Health Services, Inc.

 

Supplemental Statistical Information

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

Same Facility:

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

3/31/2018

 

Acute Care Services

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

3.7

%

Adjusted Admissions

 

 

 

 

 

 

 

2.3

%

Adjusted Patient Days

 

 

 

 

 

 

 

5.4

%

Revenue Per Adjusted Admission

 

 

 

 

 

 

 

3.4

%

Revenue Per Adjusted Patient Day

 

 

 

 

 

 

 

0.4

%

 

 

 

 

 

 

 

 

 

 

Behavioral Health Care Services

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

3.0

%

Adjusted Admissions

 

 

 

 

 

 

 

1.6

%

Adjusted Patient Days

 

 

 

 

 

 

 

0.4

%

Revenue Per Adjusted Admission

 

 

 

 

 

 

 

2.0

%

Revenue Per Adjusted Patient Day

 

 

 

 

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

 

 

First quarter ended

 

 

 

 

3/31/2018

 

 

3/31/2017

 

Revenues

 

 

$

2,687,516

 

 

$

2,612,858

 

EBITDA net of NCI

 

 

$

442,080

 

 

$

460,259

 

EBITDA Margin net of NCI

 

 

 

16.4

%

 

 

17.6

%

Adjusted EBITDA net of NCI

 

 

$

455,080

 

 

$

460,259

 

Adjusted EBITDA Margin net of NCI

 

 

 

16.9

%

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

Cash Flow From Operations

 

 

$

364,051

 

 

$

483,109

 

Days Sales Outstanding

 

 

 

53

 

 

 

50

 

Capital Expenditures

 

 

$

189,041

 

 

$

144,338

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

$

3,921,335

 

 

$

3,898,579

 

UHS' Shareholders Equity

 

 

$

5,215,646

 

 

$

4,735,962

 

Debt / Total Capitalization

 

 

 

42.9

%

 

 

45.2

%

Debt / EBITDA net of NCI (1)

 

 

 

2.32

 

 

 

2.32

 

Debt / Adjusted EBITDA net of NCI (1)

 

 

 

2.30

 

 

 

2.32

 

Debt / Cash From Operations (1)

 

 

 

3.69

 

 

 

2.91

 

 

 

 

 

 

 

 

 

 

 

(1)  Latest 4 quarters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Universal Health Services, Inc.

 

Acute Care Hospital Services

 

For the three months ended

 

March 31, 2018 and 2017

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2018

 

 

March 31, 2017

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues before provision for doubtful accounts

 

$

1,423,653

 

 

 

 

 

 

$

1,553,467

 

 

 

 

 

Less: Provision for doubtful accounts

 

 

-

 

 

 

 

 

 

 

180,983

 

 

 

 

 

Net revenues

 

 

1,423,653

 

 

 

100.0

%

 

 

1,372,484

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

581,573

 

 

 

40.9

%

 

 

554,902

 

 

 

40.4

%

Other operating expenses

 

 

307,397

 

 

 

21.6

%

 

 

315,223

 

 

 

23.0

%

Supplies expense

 

 

243,153

 

 

 

17.1

%

 

 

228,485

 

 

 

16.6

%

Depreciation and amortization

 

 

72,150

 

 

 

5.1

%

 

 

63,049

 

 

 

4.6

%

Lease and rental expense

 

 

14,283

 

 

 

1.0

%

 

 

13,916

 

 

 

1.0

%

Subtotal-operating expenses

 

 

1,218,556

 

 

 

85.6

%

 

 

1,175,575

 

 

 

85.7

%

Income from operations

 

 

205,097

 

 

 

14.4

%

 

 

196,909

 

 

 

14.3

%

Interest expense, net

 

 

531

 

 

 

0.0

%

 

 

745

 

 

 

0.1

%

Income before income taxes

 

$

204,566

 

 

 

14.4

%

 

$

196,164

 

 

 

14.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended